Direct Line Insurance Share Discussion Threads

[dmf] 22/8/2019 15:01

looking to add.....however downward trend persists....will wait a while

[jontyone] 22/8/2019 14:56

Just had my car insurance renewal from DLG, with no change in circs over the year, other than getting older, and the premium has increased to just over 25%. I checked other comparison sites and the only one that could better it was Quote Me Happy by a couple of pounds, so I shall stick with them for another year.

[riverman77] 22/8/2019 09:44

I hold LGEN and PHNX. Starting to look at DLG too given recent fall, although generally less keen on car insurers. It's hard to think of an industry with less pricing power - it's very competitive sector and most people will just go for the cheapest deal. That said, DLG doesn't rely on comparison sites which I think is an important competitive advantage.

[garycook] 22/8/2019 09:14

W,Added to my AV,DLG,LGEN,& PHNX holdings today.Also GVC doing nicely.

[wllmherk] 22/8/2019 09:05

Hitting new lows today as I write this which is very disappointing, I suppose these are the vagaries of investing. DLG is, by some distance, my largest holding so these falls are really hurting this year's performance and looking like wiping out this year's overall gains. However, I had a look at the 3-month charts for these, LGEN, AV. and ADM. All very similar except ADM got a bounce on its recent results and AV. appears to be bucking the trend today with interest in its Asia business. The Gov announced their decision on the personal injury discount rate in July which disappointed the industry and this appears to have been the trigger for the recent sell off in insurance stocks. Brexit and trade tensions not helping either but, I would suspect companies such as DLG would be quite resilient in an economic downturn. Overall, I continue to hold and reinvest dividends, if I had spare cash I'd be ploughing some into AV. and LGEN too, both quality companies IMO, no advice intended.

wllm

[garycook] 14/8/2019 03:11

W,Totally agree.

[wllmherk] 13/8/2019 19:04

Grabbed a few more today, now my biggest holding. Seems a very low price for a quality company unless I'm missing something?

wllm

[2wild] 08/8/2019 16:34

Ex 7.2p div today.
Below 300p does seem a good time to buy.

[wllmherk] 08/8/2019 16:27

I certainly agree with recent posters sentiments and have doubled my holding today significantly reducing my average which sat at 368p but, after today's purchase 332p. Happy with that and will hold these for the foreseeable with that rather chunky dividend, not to mention the Specials along the way.

wllm

[peteret] 08/8/2019 11:20

This is seriously under priced now

[fllegend] 31/7/2019 10:51

Would agree this is underpriced at the moment. The underlying results are very good, a minor drop in own brand policy numbers in home and motor exacerbated by some partnership exits. However the capital position is very strong at the moment, with a 180% Solvency Capital number. Means the company should be well buffered against any volatility in the financial markets, and there should not be much to fear with regards to plans for future dividend payments.

[wolansm] 31/7/2019 10:21

Drop a little overdone in my view, traders will start buying in for the divi, all in my imagination perhaps.I will stay put.

[woodhawk] 26/7/2019 10:16

Just the normal churn while traders make some money. If I hadn't got so many of these already, I'd be buying more right about now.

[peteret] 26/7/2019 08:06

Why is this dropping so much.Are the results going to be bad next week.Thought the dicount rate wasn't as expected it is still better than -75

[sufc555] 17/7/2019 08:27

Apologies - got this wrong failed to appreciate just how liberal minded Gauke is

[sufc555] 05/7/2019 21:24

Two points - anything above 0% is a positive- second given the political instability there is no guarantee the change will come - so if it does and it’s above 0% the shares will rise.

The govt have a clear conflict of interest as the current discount rate is costing the nhs 500m pa

[pete160] 04/7/2019 22:40

Thank you for the links, much appreciated, but the latest one says that the Govt has said that the new discount rate will likely be between 0 and 1%, so this is surely already factored into the price of insurers ?

[sufc555] 04/7/2019 18:25

Given that Boris will sack Gauke by 25th July - expect rate to change either next week or week after - change likely to be a Monday
Every 0.5% change upwards adds about 50m to DLG profits (above 0%) the accounts currently use 0%

[sufc555] 04/7/2019 18:23

hxxps://www.bc-legal.co.uk/bcdn/235-199-new-discount-rate-0-to-1-lidington-reveals

[sufc555] 04/7/2019 18:21

The law requires Gauke to change the rate by 5th August - the government has already said it expects the rate to be more than 0% - current rate is -.75%

hxxps://www.lawgazette.co.uk/news/moj-starts-countdown-clock-on-discount-rate-change/5069673.article

[peteret] 04/7/2019 10:01

If the rate changes it could negatively affect the share price Also it's down to the government so it could take forever.

[pete160] 04/7/2019 07:49

sufc, you seem to swing between next week or Aug. 5th or not even by then.

It might add credibility of your posting if you could back it up with a source or at least more detail.... ?

[sufc555] 03/7/2019 21:33

A little foolish to sell before Monday’s discount rate change

[peteret] 03/7/2019 17:01

If it gets to 3.45 I'll sell.Just hope trump doesn't cause another train wreck before then.

[lord gnome] 03/7/2019 08:33

Not wishing to give this the kiss of death, but it is looking much stronger recently. Up with the markets, or something else?